Calling the shots: the evolution of European PE funding

07 September 2015

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Debtwire is pleased to present Calling the shots: the evolution of European PE funding, published in association with Travers Smith.

Based on interviews with 150 individuals at European private equity (PE) firms, the report highlights how a previously bank debt-dominated market has been transformed by the introduction of alternative lending providers into a diverse and dynamic environment.

Highlights from the report include:

  • Alternative debt instruments accounted for two-thirds of PE financing in the past 12 months – a significant shift from pre-crisis days.
  • 60% of loans in the past 12 months were either cov-lite or cov-loose as sponsors seek increasing flexibility in the packages they put in place.
  • Over two-fifths (41%) of respondents say they expect to increase the proportion of non-amortising debt in their deals over the next 12 months
  • When arranging debt packages, flexibility to do M&A was the top consideration over the past 12 months, chosen by 56% of respondents. 49% of respondents considered flexibility to do M&A as their top priority in the next 12 months.